Government and business institutions in a country in many ways are interrelated and interdependent on each other. In today’s global economy, its businessmen and entrepreneurs are the driving forces of the economy. In planned economy or even in market economy government holds control of shaping the business activities of a country.

For maintaining a steady and upward economic growth The Government must try to make the environment for business organizations suitable. And the organizations must follow the laws of governments’ to run the businesses smoothly and making sure there is a level playing field.

The main goal of businesses is to make profit and governments’ goal is to ensure economic stability and growth. Both of them are different but very co-dependent. For this the government and organizations or businesses always tries to influence and persuade each other in many ways for various matters. A balanced relationship between the government and businesses is required for the welfare of the economy and the nation.

Furthermore‚ the relation between government and business can be explained by the following points.